Private vs. Public Investment Strategies: Reported and Real-World Performance
We estimate the real-world performance of a private strategy – different vs. the reported performance – and fairly compare it with that of a public strategy.
The growing appetite for private investments increases the potential for liquidity events, which can create a sudden and unexpected need to raise cash and can threaten a fund’s survival.
PGIM's Institutional Advisory & Solutions (IAS) group makes the case for institutional funds to create a dedicated chief liquidity management function.
The IAS team conducts bespoke, quantitative client research that focuses on asset allocation and portfolio analysis.
Learn More
We estimate the real-world performance of a private strategy – different vs. the reported performance – and fairly compare it with that of a public strategy.
Liquidity risk can be more damaging to portfolios than volatility risk. That’s why institutional funds need dedicated liquidity management.
Liquidity risk can be more severe than volatility risk. Funds may need a designated chief liquidity officer for integrated liquidity management.